German firms tell different tales
EmptyCOLOGNE, Germany -- Two of the few survivors of Germany's Neuer Markt stock crash presented very different financial pictures Tuesday.
While former high-flying producer IM Internationalmedia continues to bleed red ink, licenser Advanced Medien increased its year-end financial prognosis.
IM said Tuesday that it booked a loss of €3.4 million ($4.4 million) in the third quarter, compared with a €2.3 million loss in the same period a year ago. Revenue was up from €1 million to €3.2 million ($4.1 million).
The flaccid audience response to IM's "Basic Instinct 2" was the main cause of the distress. The Sharon Stone starrer helped IM increase sales significantly, with revenue almost tripling in the first three quarters to €45.7 million ($58.7 million). But that didn't translate into profitability. IM has lost €3.7 million ($4.7 million) so far this year, compared with a €600,000 profit recorded over the same period in 2005.
IM shares took an immediate beating on the news, falling 16.7% to close at €0.40 (51 cents) -- which also marked the day's low as well as a 52-week low for the stock.
It was a different story at Advanced. The Munich-based company boosted its year-end forecast Tuesday, citing strong momentum at airplane entertainment group Inflight Prods.
Instead of €56 million ($72 million) in revenue, Advanced said it now expects to make €59 million ($76 million) this year. The group also increased its profit prediction 60%, forecasting a profit of €2.4 million ($3.1 million) for the year.
Advanced said the more positive prediction was based on better-than-expected results at Inflight, which Advanced acquired this year.
Shares in Advanced Medien, traded on Berlin's stock market, ticked up 2.4% to €1.70 ($2.18) in Tuesday trading.